PBoC sheds light on opaque liquidity measures
New liquidity facility aims to offset effects of falling FX inflows
The People's Bank of China (PBoC) has confirmed suspicions that it has been injecting billions in renminbi liquidity into the financial system over the past two months.
The central bank's third-quarter monetary policy report unveiled a new liquidity operation dubbed the "medium-term lending facility" (MLF), which offers renminbi liquidity to banks on a three-month basis against high-quality collateral.
The PBoC injected 500 billion yuan ($82 billion) in September and 270 billion yuan in October
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